Post by Sapphire Capital on Jul 11, 2008 23:44:13 GMT 4
Regulatory Environment
link: sezindia.nic.in/
Incentives offered:
Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.
Exemption from Central Sales Tax.
Exemption from Service Tax.
Single window clearance for Central and State level approvals.
Exemption from State sales tax and other levies as extended by the respective State Governments.
sample for SEZ: link: www.navimumbaisez.com/
Best Indian Bank to use:
Punjab National Bank, www.pnboffshore.com/
Bank of Baroda, www.bankofbaroda.com/int/offshorebanking.asp
You will find some countries have US-IRS letter rulings which effectively make the tax handling a rather dicy affair and it needs advisors, so it is getting more difficult. Still the use can be very profitable for both side, the tax test goes just down that angle, if you use for one sided tax benefits the benefits are usually difficult, if both sides benefit the full benefits apply. Don't use the special licenzed companies in these zones without advisors
link: sezindia.nic.in/
Incentives offered:
Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.
Exemption from Central Sales Tax.
Exemption from Service Tax.
Single window clearance for Central and State level approvals.
Exemption from State sales tax and other levies as extended by the respective State Governments.
sample for SEZ: link: www.navimumbaisez.com/
Best Indian Bank to use:
Punjab National Bank, www.pnboffshore.com/
Bank of Baroda, www.bankofbaroda.com/int/offshorebanking.asp
You will find some countries have US-IRS letter rulings which effectively make the tax handling a rather dicy affair and it needs advisors, so it is getting more difficult. Still the use can be very profitable for both side, the tax test goes just down that angle, if you use for one sided tax benefits the benefits are usually difficult, if both sides benefit the full benefits apply. Don't use the special licenzed companies in these zones without advisors